A senior police officer from Mizoram informed BBC that Colonel Jasjit Singh was arrested on Thursday.
It has been reported that Colonel Jasjit Singh ordered his men to loot the gold that was being smuggled from Myanmar, into Mizoram in December last year. The value of the looted gold has been estimated at around 140m rupees ($2.1m).
Another eight army personnel were also arrested from Aizawl, Mizoram's capital city, for their involvement in the crime.
Colonel Singh was aware of the gold being smuggled on this particular route and ordered his armed men to loot the vehicle.
It was only after the driver of the vehicle files a complaint with police on 21st of April, that the police took some action.
The Indian army has also started its own investigation into the matter.
